Crompton Greaves, a power solutions provider, said it has plans to acquire US- or Europe-based manufacturers of power and industrial systems as valuation of overseas companies has dropped sharply because of the global financial crisis.
"We are actively looking at buyout of companies in these two verticals and are targeting acquisitions in the range of ¤200-400 million. We are yet to zero in on any specific target," said Sudhir M Trehan, managing director. The company, which is part of the $3-billion Avantha Group, reported a profit after tax of Rs 409 crore on a turnover of Rs 6,832 crore for the financial year ended March 2008. "We are a zero-debt company and raising funds for the acquisition may not be an issue," he told reporters on the sidelines of the Confederation of Indian Industry (CII)-India Energy Conclave 2008 in Mumbai today.
Crompton Greaves had acquired a Belgium-based transformer maker Pauwels in 2005 and in the next year, it bought two Hungarian electrical equipment manufacturing companies. In 2007, the company bought an Ireland-based sub-station and distribution automation specialist company Microsol Holdings (MHL) and in June 2008, it bought a French transformer maker Sonomatra. Most of these acquisitions were small strategic buy-outs, said sources.
He said the company is set to maintain its growth record despite the global slowdown, with a minimum 20 per cent revenue growth in the current and next financial years. Already 60,000 MW worth projects are being executed in the country and power projects are unlikely to be affected by the slowdown, he said.
The order book position of Crompton Greaves stands at about $1.5 billion (about Rs 7,500 crore) as of October, which is more than 25 per cent of the company's turnover.
Crompton Greaves makes electrical products and services related to power generation, transmission and distribution, besides executing turnkey projects.